India’s Retail Media Outlook 2026: Growth Amidst Change
Retail media networks led by Amazon Ads, Flipkart Ads and Reliance Retail Media are set to become a dominant force in India’s ad market by 2026. Point-of-intent reach and closed-loop measurement will keep brands investing, with retail media projected to capture roughly 8 to 12 percent of India’s digital ad spend within three years.
Key shifts shaping retail media
Regulatory focus and data privacy
India’s regulatory landscape is tightening. New data protection rules and scrutiny of quick commerce models will force RMNs to formalize consent workflows, audit data flows and publish clearer inventory and fee structures. Brands will demand documented privacy-compliant practices before committing large budgets.
First-party data and identity strategies
First-party assets will be the currency of retail media. Loyalty programs, authenticated transactions, on-site behavior and consented CRM records will underpin targeting. Expect wider adoption of clean rooms and identity graphs that respect user consent and reduce reliance on third-party identifiers.
AI and applied intelligence in RMNs
Applied AI will move from proof-of-concept to production: automated bid optimisation, dynamic creative that matches basket context, predictive lifetime value models and next-best-offer orchestration. Retailers with AI that ties in purchase intent, inventory signals and offline data will deliver higher ROI.
Measurement, attribution and advertiser trust
Advertisers will demand transparent, multi-method measurement: on-site conversion tracking, media mix models, experimentation and privacy-first probabilistic attribution. RMNs that publish methodology, enable independent verification and offer standardized metrics will retain advertiser confidence.
Practical priorities for brands and retailers
- Invest in first-party data capture: strengthen loyalty, authenticated commerce and consent management.
- Integrate AI where it links directly to business outcomes: forecasting, assortment-aware bidding and creative personalization.
- Adopt privacy-first measurement: combine MMM, incrementality tests and server-side conversion signals.
- Demand transparency: fee disclosure, inventory definitions and third-party audits from RMNs.
- Plan for org change: cross-functional teams combining marketing, data, legal and supply chain.
By 2026 the winners will be retailers who convert rich commerce data into trustable ad products and brands who pair first-party reach with rigorous measurement and AI-led optimization.
